The government announced on Wednesday a hike in the minimum price that sugar mills must pay to sugarcane growers by Rs 25, setting it at Rs 340 per quintal for the 2024-25 season starting in October.
This marks the highest Fair and Remunerative Price (FRP) for sugarcane since the Prime Minister Narendra Modi-led government took office in 2014. It is the second time under Modi's tenure that the FRP has been raised by Rs 25 per quintal in one go.
The decision, made at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, precedes the general elections. Sugarcane cultivation is primarily concentrated in Maharashtra, Uttar Pradesh, and Karnataka.
Anurag Thakur, the Minister of Information and Broadcasting, informed reporters that the CCEA approved the FRP of sugarcane for the 2024-25 season at Rs 340 per quintal with a sugar recovery rate of 10.25 per cent. This reflects an 8 per cent increase over the current season's FRP.
Thakur highlighted that the new FRP is 107 per cent higher than the A2+FL cost of sugarcane, aiming to ensure prosperity for sugarcane farmers. The revised FRP will take effect from October 1, 2024, and is based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
The government emphasised that this decision would benefit over 5 crore sugarcane farmers and countless others involved in the sugar sector, reinforcing its commitment to doubling farmers' income. Thakur noted that nearly 80 per cent of the outstanding amount for the current 2023-24 season has already been paid to farmers.
Over the years, the FRP has seen a steady increase, from Rs 210 per quintal in the 2013-14 marketing year to Rs 315 per quintal in the 2023-24 marketing year.
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